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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 42903
Experience:  30 years in civil, probate, real estate, elder law
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If you change the name on your property to an adult child

Customer Question

If you change the name on your property to an adult child who also owns their own home and who does not reside in the home, and you no longer reside in the home yourself , but another child and their children are living there , how does the Enhanced Star Program work? Does the adult child benefit from the Star program on both properties; his and the parent?
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you tonight. Here if you are neither of the parties here reside in the home as their primary residence you no longer qualify for the program.If the tax authorities here find out they could seek back taxes here and revoke your participation.

The rules say you must own your own home and it must be your primary residence.

Determining your primary residence

Your local assessor considers many factors to determine whether a property is your primary residence, like voting, vehicle registrations, and length of time spent each year on the property. They may ask you to provide proof of residency:

  • with your STAR application
  • after granting the exemption, to verify that it remains your primary residence.

You would be at risk of owing back taxes here and loosing your status in the program here.Since there was a change of ownership when neither of you are living there any more you need to give them notice of the change.

Reference

https://www.tax.ny.gov/pit/property/star/eligibility.htm

I appreciate the chance to help you tonight.Please let me know if you have more follow up.Thanks again.

Expert:  Ray replied 1 year ago.

Taxpayers whose STAR exemptions are revoked by the assessor may be subject to a penalty. Penalties will apply if the exemption has been inappropriately granted in the past and revoked for the following reasons:

  • inadvertently receiving multiple STAR exemptions, or
  • making a "material misstatement," as described below.

The penalties are calculated as follows:

  • The amount of the benefit received inappropriately over the "look-back period*", plus interest; and
  • a $500 processing fee applicable to inappropriate exemptions occurring on assessment rolls filed after April 1, 2013
Expert:  Ray replied 1 year ago.

f a property owner makes a "material misstatement" on his or her STAR application to the assessor, additional penalties apply.

A "material misstatement" means that the property owner:

  • claimed a property was his or her primary residence when it was not;
  • claimed they had relinquished the STAR exemption on a former primary residence when they knew they had not; or
  • misrepresented their age or income to appear eligible for the enhanced STAR exemption.

The penalty for a material misstatement increases on October 1, 2013.

  • Misstatement on an application prior to October 1, 2013
    • $100 penalty (fee goes to assessing unit)
    • Payback up to 3 years of inappropriately received benefits plus interes
    • Disqualification for any STAR exemption for 5 years
  • Misstatement is on application after October 1, 2013
    • Penalty equal to the greater of $100 or 20% of inappropriately received benefits, not to exceed $2500 (fee goes to assessing unit)
    • Payback up to 6 years of inappropriately received benefits plus interest
    • Disqualification for any STAR exemption for 6 years

* In 2013, the look-back period is the prior three years. In 2014, the look-back period is the prior four years. In 2015, the look back period is the prior five years. In 2016 and beyond, the look-back period is the prior six years.

https://www.tax.ny.gov/pit/property/star/penalties.htm

You really need to report it when the other party ceases to live there as primary residence, there are some pretty good penalties here.

Expert:  Ray replied 1 year ago.

Thanks again so much for the chance to help you.I wish you a happy holiday season.

If you can leave a positive rating it is always much appreciated.